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Sarasota, FL, United States, 2007/01/11 - Will spot uranium’s momentous price rise stall in 2007, or ‘hiccup’ as StockInterview’s James Finch writes? He cautions investors to consider the risks of Russian-enriched uranium and speculative carrying costs during the race for $100/pound uranium.
“There should be fireworks through 2007 as the uranium price approaches and probably crosses the $100/pound threshold, perhaps as early as late spring,” StockInterview Senior Editor James Finch wrote. But, Finch also advised there may not be as much upside left to the uranium price. Finch warned of new Russian-enriched uranium supplying panicked U.S. utilities with nuclear fuel, “The hiccup in uranium’s price rise could come with the U.S. Commerce Department settlement with Russia ’s Tekhsnabexport.”
Finch also cautioned of the large quantity of physical uranium that speculators have been hoarding. According to Treva Klingbiel, editor of TradeTech’s Nuclear Market Review, which first publishes the weekly spot uranium price on Fridays, “Speculators are holding about 24 million pounds of U3O8 equivalent.”
Finch warned speculators may need to unload the quantity of uranium which they accumulated before and during the near doubling of the spot uranium price during 2006. Finch wrote, “The loan rate for uranium has also jumped since the year 2000. According to TradeTech’s Loan Rate for uranium purchases the carrying cost is the highest since September 1978. It is one-half-percent lower than the peak months of 1974.”
In the second article of a two-part series, entitled, “Russia, Speculators to Dictate Future Price Swings in Uranium Price,” StockInterview Senior Editor James Finch examines the hurdles the uranium price might face on its race to the century level. The second part of a two-part series can be read online.
Stockinterview.com is an online news service, which provides investigative reporting, editorial, analysis and provocative commentary of the nuclear fuel cycle, uranium mining, nuclear power, the environment and the natural resource industry. StockInterview.com has rapidly become the most popular website on uranium mining stocks and is now widely followed as a result of its publication, “Investing in the Great Uranium Bull Market: A Practical Investor’s Guide to Uranium Stocks.”
The 304-page trade softcover edition of “Investing in the Great Uranium Bull Market,” is available online.